Professional Documents
Culture Documents
LIMITED
BY:
SIMRAN GOPLANI
DECLARATION
I declare that the project entitled “ANNUAL REPORT OF AJANTA
PHARMA LIMITED” is a record of an original work done by me under the
guidance of Mr. Ravi sir of Carlton Business School, Hyderabad, for giving me
some good guidance for assignment through constant Motivation and
Encouragement. I would also like to extend my gratitude to all those who have
directly or indirectly helped me in completion of assignment.
SIMRAN GOPLANI
PGDM 2018
ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my lecturer Dr. Prof.
Raj Kumar of Carlton business school, who gave me the golden opportunity to
this project , who also helped me in completing this project.
In the USA, the market environment has been challenging because of pricing
pressure due to buyers’ consolidation. Driven by new launches and seamless
execution, we have weathered the headwinds satisfactorily which is reflected in
our year-on-year growth. Our focus remains on maintaining a robust product
pipeline through increased filing of ANDAs as well as quicker launches.
FINANCIAL PERFORMANCE
Consolidated income from operations for FY 2018 was at ` 2,131 cr. - growth of
6%. Consolidated net profit was ` 469 cr. - down by 8%. Our EBIDTA margins
were impacted due to operational cost of two new plants being fully charged,
whereas the capacity utilisation was low. Higher R&D expenses and changes in
gratuity limit also compressed the margins.
Emerging Markets FY 2018 was a difficult year for the Indian pharmaceutical
market. Inventory destocking due to the implementation of Goods and Services
Tax (GST) impacted the industry.
In fact, the domestic pharmaceutical industry growth rate in FY 2018 was the
lowest in last five years. Undeterred in our pursuit of excellence, we posted
faster-than-industry growth in a majority of key therapeutic segments.
The therapy segment that led the growth during FY 2018 were Ophthalmology
(13% growth vis-à-vis segment growth of 7%), followed by Cardiology (10%
growth segment growth of 6%) and Pain Management (8% growth vis-à-vis
segment growth of 4%). The Dermatology business did not perform as per our
expectations (4% degrowth vis-à-vis segment growth of 14%) where we have
applied the corrections and are now confident of returning soon to growth
trajectory
DIRECTORS'' REPORT
Dear Shareholders,
The Directors present their Thirty-ninth Annual Report and Audited Financial
Statements for the Year ended 31st March
Performance Review
Company continues to operate only in one segment
Dividend
Board deferred the proposal of declaration of dividend and desired to evaluate
other options to utilise the funds/reward the shareholders.
Transfer to Reserves
The Company proposes to keep the entire retained earnings in Profit & Loss
Account.
The Scheme was approved by the shareholders on 10th October 2017. Further,
all the Regulatory authorities viz. ROC, Regional Director, Official Liquidator
and Income Tax have submitted their report to National Company Law Tribunal
(NCLT). Matter is being heard at NCLT.
There are no material changes and commitments affecting the financial position
of the Company, which have occurred between the end of the financial year and
the date of this report.
No significant or material orders have been passed against the Company by the
Regulators, Courts or Tribunals, which impacts the going concern status and
company''s operations in future.
Management Discussion and Analysis (MDA) forms part of this annual report,
which is given elsewhere in the Report.
During the year, 9,500 shares were issued under the ESOS, 2011. Consequent
thereto, total paid up equity share capital of the Company as on 31st March
2018 stood at Rs, 17.60 crores divided into 8,80,14,500 Equity shares of Rs, 2/-
each. Particulars of Employee Stock Options granted/vested/exercised during
the year are given in "Annexure A" to this report.
The Company''s bank facilities are rated by Credit Analysis and Research Ltd.
(CARE). The Company continues to have rating Care A1 for its working capital
facilities and Care AA for long term borrowings, which indicates very
strong/high degree of safety regarding timely payment of financial obligations.
Such instruments carry lowest credit risk.
Your company continues to have six subsidiaries overseas, including one step
down subsidiary and there were no changes in the same during the year.
Financials of subsidiaries are disclosed in the consolidated financial statements
which forms part of this Annual Report. The Company does not have any
Associate company.
Company''s UK subsidiary has not started any operations and management do
not intend to start the operations. Hence initiated the process of closing this
subsidiary.
The Company has laid down policy on material subsidiaries and none of the
subsidiaries are material subsidiary as per the Policy. The policy is placed on
the website of the Company and its we blink is http://
www.ajantapharma.com/AdminData/PolicyCodes/ c2ea3c56-332b-4e83-a771 -
f1a8934ec008PolicyonMat erialSubsidiaries.pdf
All Independent Directors have given declarations that they meet the criteria of
independence as laid down under Section 149(6) of the Act and Securities and
Exchange Board of India (Listing Obligation and Disclosure Requirements)
Regulation, 2015 (Listing Regulations). Based on disclosures provided by
Directors, none of them are disqualified from being appointed as Directors
under section 164 of the Act.
b. Retirement by rotation
c. Board meetings
During the year, four Board meetings were held, details of which are given in
the Report on Corporate Governance.
Pursuant to the provisions of the Act and the Listing Regulations, the Board had
carried out performance evaluation of its own, the Board Committees and of the
Independent directors. Further, Independent Directors at a separate meeting
evaluated performance of the Non Independent Directors, Board as a whole and
of the Chairman of the Board.
Manner in which the evaluation has been carried out and matters incidental
thereto, have been detailed in the Report on Corporate Governance, which
forms part of this report.
a. Statutory Auditors
Auditor''s Report for the year under review does not contain any qualifications,
reservations or adverse remarks.
b. Secretarial Auditors
Pursuant to the provisions of Section 204 of the Act and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, the
Company had appointed M/s. Alwyn Dsouza & Co., Company Secretaries in
Practice to undertake the Secretarial Audit of the Company. The Secretarial
Audit Report is annexed to this report as "Annexure C". There are no
qualifications, reservation or adverse remark in the report.
c. Cost Auditors
Pursuant to Section 1 48 of the Companies Act, 2013 read with The Companies
(Cost Records and Audit) Rules 2014, as amended from time to time, the cost
audit records maintained by the Company are required to be audited by cost
accountant. Company has appointed M/s. Sevekari, Khare & Associates,
Practicing Cost Accountants to audit the cost records of the Company for the
financial year 2018-19. The remuneration payable to them is required to be
ratified by the Shareholders at the ensuing Annual General Meeting and
accordingly, a resolution seeking ratification has been included as Item No. 4 of
the Notice convening the Annual General Meeting.
The Cost Audit Report for the FY 2017 has been filed with the Ministry of
Corporate Affairs on 15th September 2017.
During the year under review, the statutory auditors, secretarial auditors and
cost auditors have not reported any instances of fraud committed in the
Company by its officers or employees to the Audit Committee under section
143(12) of the Companies Act, 2013, details of which needs to be mentioned in
this Report.
Company has in place well defined and adequate internal financial control
framework. During the year, such controls were tested and no material
weakness in their design of operations were observed. Risk Management system
followed by the Company is detailed in the Management Discussion and
Analysis.
The Company has set up vigil mechanism viz. Whistle Blower Policy to enable
the employees and Directors to report to the Audit Committee Chairman,
genuine concerns, unethical behavior and irregularities, if any, noticed by them
in the Company, which could adversely affect company''s operations. It is
posted on the intranet of the Company. The same is reviewed by the Audit
Committee from time to time. No concerns or irregularities have been reported
by employees/directors till date.
Most of the Related Party transactions (RPTs) entered during the financial year
were with the Company''s wholly owned subsidiaries and donations to
charitable trusts for CSR activities. These were on an arm''s length basis and in
the ordinary course of business. As such, no particulars of such contracts or
arrangements are furnished with this report. All the RPTs affected during the
year are disclosed in the notes to Financial Statements.
The Board has approved and adopted Policy on Related Party Transactions and
the same is uploaded on the Company''s website and its we blink is
http://www.ajantapharma.com/AdminData/
PolicyCodes/2018PolicyonRelatedPartyTransactions. pdf
Information pursuant to Rule 5(2) & 5(3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 pertaining to the top ten
names and other particulars of employees also form part of this report.
However, this information is not sent along with this report pursuant to the
proviso to Section 136(1) of the Act. Any shareholder interested in obtaining a
copy of the same may write to the Company Secretary/Compliance Officer at
the registered office address of the Company.
The Company''s CSR Policy primarily rests on three broad tenets viz.,
Healthcare, Education & Community welfare and the same is within the ambit
of Schedule VII of the Act. During the year, Company continued several
initiatives under the CSR program, directly as well as through agencies
permitted under the Act. Details of CSR policy and CSR activities undertaken
during the year is annexed to this report as "Annexure E" and are also given
elsewhere in this report.
Particulars
Shareholders
No. of shares
1.
33
27,250
2.
3
2,250
3.
2,250
4.
4*
2,500
5.
30
22,500
Voting rights on these shares shall remain frozen till the rightful owner of such
shares claims the shares.
Further, during the year 26,260 shares on which dividend had remained
unclaimed for last 7 years were transferred to Investor Education & Protection
Fund in accordance with the Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016, after complying due
procedure. Members desirous of claiming their shares may refer to the refund
procedure for claiming the aforementioned amounts/shares transferred to the
IEPF Authority, as detailed on www.iepf.gov.in.
23. Deposits
Your Company has not accepted any deposits from the public falling within the
purview of Section 73 of the Act read with the Companies (Acceptance of
Deposits) Rules, 2014.
24. Green initiative
The Ministry of Corporate Affairs had taken the Green Initiative in Report on
Corporate Governance by allowing paperless compliances by Companies
through electronic mode.
Your Company supports the Green Initiative and has accordingly decided to
send necessary communications to its Shareholders to their respective registered
E-mail addresses.
Your Company appeals to you, its Shareholders, who are yet to register the E-
mail addresses that they take necessary steps for registering the same so that
you can also become a part of the initiative and contribute towards a Greener
environment.
The extract of the Annual Return in form MGT 9 is annexed to this report as
"Annexure F".
27. Directors'' Responsibility Statement
To the best of their knowledge and belief and according to the information and
explanations obtained by them, your Directors confirm:
a. that in the preparation of the annual accounts for the year ended 31st March
2018, the applicable Accounting Standards had been followed along with proper
explanation relating to material departures, if any;
b. that the directors had selected accounting policies and applied them
consistently and made judgments and estimates that are reasonable and prudent
so as to give a true and fair view of the state of affairs of the Company at the
end of the financial year ended 31st March 2018 and of the profit of the
Company for the year;
c. t hat proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities;
e. that proper internal financial controls were in place and that the financial
controls were adequate and were operating effectively;
f. that the Directors had devised proper systems to ensure compliance with the
provisions of all applicable laws were in place and were adequate and operating
effectively.
28. Conservation of energy, technology absorption, foreign exchange earnings
and outgo
The Company recognizes that the employees are the most valuable resource and
endeavors to empower its employees to meet business excellence while meeting
their career aspirations. It continues to focus on progressive employee relations,
policies and building high performance culture with the growth mindset where
employees are engaged, productive and efficient. Industrial relations were
cordial throughout the year.
Programs like Lose to Win, Safety First, various sports tournaments, inbound &
outbound training programs, recreational and team building activities, etc. are
part of the total employee experience helping to promote individual wellness
while balancing the needs of the work, family and society.
Your Directors place on record their sincere appreciation for the steadfast
commitment and highly motivated performance by employees at all levels
across the globe which was instrumental in sustained performance of the
Company. Your Directors also sincerely thank all the stakeholders, medical
professionals, business partners, government & other statutory bodies, banks,
financial institutions, analysts and shareholders for their continued assistance,
cooperation and support.
Mannalal B. Agrawal
Mumbai, 2nd May 2018 Chairman
Profit & Loss account of Ajanta Pharma ------------------- in Rs. Cr. ----------
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